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7:40 Expert Q&A Done Hank Schrader plans to invest $360 at the end of each month for 5 years into an account with an APR of 8
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Answer #1

Information provided:

Monthly investment= $360

Time= 5 years*12= 60 months

Interest rate= 8.9%/12= 0.7417% per month

The question is solved by calculating the future value.

Enter the below in a financial calculator to compute the future value:

N= 60

PMT= 360

I/Y= 0.7417

Press the CPT key and FV to compute the future value.

The value obtained is 27,081.54.

Therefore, the value of down payment will be $27,081.54 five years from now.

In case of any query, kindly comment on the solution.

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